Developed Markets

Developed market mutual funds and ETFs invest in a wide range of... Developed market mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in a range of countries or regions including the U.S. Depending on the fund in question and its mandate, it may have exposure to Canada and the United States, western Europe, Australasia, and Japan. Additionally, these funds can be further classified based on management style (active or passive) and asset class (single or multi-asset). The fixed-income portion of these funds may invest in debt securities varying by type (government or corporate), credit quality (investment-grade or junk), duration (short or long), and strategy (inflation-protected or sector-diversified). The equity portion of these funds may invest in common equities, and these can vary by market capitalization (small or large), dividend income (total income or high income), and strategy (sector-based or factor-based), among others. The alternatives portion of these funds may invest in strategies including real estate, currency trading, commodities, derivatives or other techniques relying on volatility, hedge fund, or quantitative strategies. A developed market economy is one characterized by high levels of income, capital mobility, and market regulation, making them politically stable and safer compared to emerging markets. As a result, governments and private companies in developed nations can can borrow at lower interest rates than their counterparts in emerging nations, as they are more likely to make interest and principal payments on time. Conservative-minded investors will often prefer to own developed market mutual funds and ETFs instead of those focused on emerging and frontier markets. However, because developed market economy securities are considered to be fairly safe investments relative to less-developed market investments, the potential return is lower. Last Updated: 12/27/2024 View more View less

Developed market mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in a range of countries or regions including the U.S. Depending on... Developed market mutual funds and ETFs invest in a wide range of asset classes, including equities, fixed income, commodities, and alternatives, in a range of countries or regions including the U.S. Depending on the fund in question and its mandate, it may have exposure to Canada and the United States, western Europe, Australasia, and Japan. Additionally, these funds can be further classified based on management style (active or passive) and asset class (single or multi-asset). The fixed-income portion of these funds may invest in debt securities varying by type (government or corporate), credit quality (investment-grade or junk), duration (short or long), and strategy (inflation-protected or sector-diversified). The equity portion of these funds may invest in common equities, and these can vary by market capitalization (small or large), dividend income (total income or high income), and strategy (sector-based or factor-based), among others. The alternatives portion of these funds may invest in strategies including real estate, currency trading, commodities, derivatives or other techniques relying on volatility, hedge fund, or quantitative strategies. A developed market economy is one characterized by high levels of income, capital mobility, and market regulation, making them politically stable and safer compared to emerging markets. As a result, governments and private companies in developed nations can can borrow at lower interest rates than their counterparts in emerging nations, as they are more likely to make interest and principal payments on time. Conservative-minded investors will often prefer to own developed market mutual funds and ETFs instead of those focused on emerging and frontier markets. However, because developed market economy securities are considered to be fairly safe investments relative to less-developed market investments, the potential return is lower. Last Updated: 12/27/2024 View more View less